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<strong>Consultation</strong> on Changes to the<br />

<strong>Housing</strong> <strong>Selection</strong> <strong>Scheme</strong><br />

November 2012


Contents<br />

Background 3<br />

<strong>The</strong> <strong>Housing</strong> <strong>Selection</strong> <strong>Scheme</strong> 3<br />

Purpose and Scope of the <strong>Consultation</strong> 4<br />

Bedrooms - <strong>Housing</strong> Benefit Occupancy Rules 5<br />

Key Proposals 7<br />

Ensuring New Tenants are not Under-Occupying 7<br />

Minimum Bedroom Requirements 7<br />

Overcrowding Rules 11<br />

Interim Offers Policy 11<br />

Policy Succession and Assignment 11<br />

Supporting Existing Tenants 12<br />

Under-Occupation Points 13<br />

Allocations to Transfers 14<br />

Access to the Transfer List/Consent to a Mutual Exchange 14<br />

Mobility and Mutual Exchange <strong>Scheme</strong>s 15<br />

Creation of Joint Tenancies 15<br />

Impact on Local Lettings Plans 15<br />

Equality 17<br />

Rural Proofing 18<br />

Summary of <strong>Consultation</strong> Questions 19<br />

How to Respond 21<br />

Next Steps 22<br />

Proposals for Changes to the <strong>Housing</strong> <strong>Selection</strong> <strong>Scheme</strong> 2


Background<br />

<strong>The</strong> <strong>Housing</strong> <strong>Selection</strong> <strong>Scheme</strong><br />

<strong>The</strong> <strong>Housing</strong> (<strong>Northern</strong> Ireland) Order, 1981 (Article 22) provides the statutory<br />

framework for the <strong>Housing</strong> <strong>Selection</strong> <strong>Scheme</strong>. <strong>The</strong> <strong>Housing</strong> Executive must<br />

submit a scheme for determining the order of allocation of <strong>Housing</strong> Executive<br />

tenancies. Any amendments to the statutory scheme must be submitted to the<br />

Department for Social Development for approval.<br />

In 2000 the <strong>Housing</strong> Executive and Registered <strong>Housing</strong> Associations in <strong>Northern</strong><br />

Ireland, having established a Common Waiting List for all social housing in<br />

<strong>Northern</strong> Ireland, agreed to participate in a Common <strong>Selection</strong> <strong>Scheme</strong> and<br />

since then the <strong>Housing</strong> Executive’s <strong>Housing</strong> <strong>Selection</strong> <strong>Scheme</strong> has been used as<br />

the basis on which all social housing is allocated in <strong>Northern</strong> Ireland, whether<br />

owned and managed by the <strong>Housing</strong> Executive or any of the registered <strong>Housing</strong><br />

Associations.<br />

<strong>The</strong> <strong>Housing</strong> <strong>Selection</strong> <strong>Scheme</strong> is first and foremost a tool for assessing and<br />

ranking the need of individual households who apply for social housing in<br />

<strong>Northern</strong> Ireland and allocating homes on the basis of that assessed need and<br />

ranking. In addition, tenants who wish to transfer within their landlord’s stock or<br />

across the pool of social housing are also assessed and ranked as applicants<br />

under the rules of the <strong>Housing</strong> <strong>Selection</strong> <strong>Scheme</strong>. <strong>The</strong> <strong>Scheme</strong> provides for the<br />

award of points to applicants for housing need factors such as insecurity of<br />

tenure, housing conditions, and health/social well-being, with the overall<br />

accumulation of points determining the position and ranking of an applicant on<br />

the waiting list.<br />

A full copy of the current rules of the <strong>Housing</strong> <strong>Selection</strong> <strong>Scheme</strong> can be found on<br />

the <strong>Housing</strong> Executive’s website at:<br />

http://www.nihe.gov.uk/housing_selection_scheme_rules.pdf<br />

Proposals for Changes to the <strong>Housing</strong> <strong>Selection</strong> <strong>Scheme</strong> 3


Purpose and Scope of the <strong>Consultation</strong><br />

In 2011 a preliminary consultation was carried out on proposals to amend a<br />

number of key aspects of the <strong>Housing</strong> <strong>Selection</strong> <strong>Scheme</strong>. <strong>Housing</strong> Executive and<br />

DSD officers subsequently jointly developed a number of options for<br />

modernisation of the <strong>Scheme</strong> which contained an option for a potentially radical<br />

examination of what factors should be taken into account in determining the<br />

priority for the allocation of social housing.<br />

This work was reported to the Minister in early 2012 and, as a result, the Minister<br />

has recently announced a fundamental review of allocations policy in <strong>Northern</strong><br />

Ireland. <strong>The</strong> fundamental review will be conducted by independent consultants<br />

and will consider overarching strategic issues.<br />

It will take some time to research, develop, consult and implement change on<br />

such a scale and, in the interim, while that broader work is being carried out, it is<br />

recognised that important amendments will be required as a matter of priority to<br />

the existing <strong>Housing</strong> <strong>Selection</strong> <strong>Scheme</strong> in light of the Government’s programme<br />

of Welfare Reform.<br />

<strong>The</strong> Welfare Reform Act, affecting Great Britain, received Royal Assent in March<br />

2012. <strong>The</strong> Act provides for the most fundamental programme of welfare reform<br />

for sixty years. A similar Welfare Reform Bill has been developed for <strong>Northern</strong><br />

Ireland, and is currently being debated by the <strong>Northern</strong> Ireland Executive and will<br />

be subject to approval by the Assembly. <strong>The</strong> Bill proposes corresponding<br />

changes here and, if implemented, many of the current benefits will cease to<br />

exist and a new Universal Credit will replace several benefits and new payment<br />

systems will be introduced. Information on universal credit and other elements of<br />

welfare reform can be found on the NI Direct Website: www.nidirect.gov.uk<br />

If the Welfare Reform Bill is passed, and <strong>Northern</strong> Ireland maintains parity with<br />

Great Britain, from 1 April 2013 a size criteria will be introduced for new and<br />

existing working-age 1 <strong>Housing</strong> Benefit claimants living in the social rented sector.<br />

This size criteria will replicate that which applies to <strong>Housing</strong> Benefit claimants in<br />

the private rented sector and whose claims are assessed using the local housing<br />

allowance rules. <strong>The</strong> tenant’s maximum rent will be reduced by a national<br />

percentage rate depending on how many bedrooms the household is considered<br />

to be under-occupying. <strong>The</strong> change will only apply to working-age <strong>Housing</strong><br />

Benefit claimants. New and existing <strong>Housing</strong> Benefit claims from those claimants<br />

who have reached the qualifying age for state pension credit will be unaffected<br />

by this measure.<br />

<strong>The</strong> size criteria measure is the only element of the Welfare Reform Bill which<br />

affects social landlords alone.<br />

1 By April 2013 the qualifying age for state pension credit is 61 rising to 62 years by the following<br />

April so, a tenant who is aged 62 or older before 6 April 2013 (or more precisely anyone born<br />

before 6 October 1951) will not be subject to the size criteria.<br />

Proposals for Changes to the <strong>Housing</strong> <strong>Selection</strong> <strong>Scheme</strong> 4


Making best use of social housing stock is one of the aims of the size criteria.<br />

<strong>The</strong> Government intention is that, by moving away from a system of benefit that<br />

pays for any sized home regardless of household need, movement will be<br />

created within social housing stock ensuring that the resulting vacancies are<br />

targeted towards those who need them most.<br />

Size criteria - Key Points<br />

• the size criteria will apply to new and existing working age housing benefit<br />

claimants in the social rented sector.<br />

• the measure is due to come into effect from 1 April 2013.<br />

• by April 2013 the qualifying age for state pension credit is 61 rising to 62<br />

years by the following April so, a tenant who is aged 62 or older before 6 April<br />

2013 (or more precisely anyone born before 6 October 1951) will not be<br />

subject to the size criteria.<br />

• <strong>Housing</strong> Benefit claimants will be assessed to establish the size of<br />

accommodation the tenant and their household are deemed to reasonably<br />

need (see section on ‘Bedrooms - <strong>Housing</strong> Benefit Occupancy Rules)<br />

• those who are assessed as under-occupying for housing benefit purposes will<br />

have their housing benefit reduced by a percentage rate of their eligible rent<br />

depending on the number of bedrooms they are deemed to be underoccupying:14%<br />

for one extra bedroom 25% for two or more extra bedrooms<br />

• a tenant on partial housing benefit will have the size criteria applied in the<br />

same way as those on full housing benefit. So, if a tenant whose rent is £80<br />

per week receives £40 per week housing benefit and is under-occupying by<br />

two bedrooms, their benefit will be reduced by 25 per cent of the £80 rent, not<br />

25 per cent of the £40 housing benefit - a reduction of £20 per week rather<br />

than £10.<br />

Bedrooms - <strong>Housing</strong> Benefit Occupancy Rules<br />

<strong>The</strong> size of bedroom, for example, single, twin or double, will not be taken into<br />

account and living rooms, kitchens and bathrooms will not be included in the<br />

assessment.<br />

One bedroom is allowed for:<br />

• each adult couple<br />

• any other person aged 16 or over<br />

• two children of the same sex under the age of 16<br />

• two children regardless of sex under the age of 10<br />

• any other child<br />

• a carer, or one of a team of carers, who has a home elsewhere, who uses a<br />

spare bedroom on a regular basis to stay overnight because the claimant or<br />

their partner requires overnight care.<br />

Proposals for Changes to the <strong>Housing</strong> <strong>Selection</strong> <strong>Scheme</strong> 5


<strong>The</strong>re is no distinction between larger and smaller bedrooms for housing benefit<br />

purposes, for example, a house with one double bedroom and two single<br />

bedrooms will be a three bedroom property.<br />

<strong>The</strong> size criteria do not apply to:<br />

• those over state pension credit age<br />

• those in shared ownership schemes<br />

• those in sheltered or supported housing who have support services provided<br />

by a not for profit landlord. 2<br />

Otherwise, there are no exceptions to this which means that:<br />

• if separated parents share childcare, the child will only be taken account of in<br />

calculating the property size for the housing benefit claim of the designated<br />

‘main carer’ – if care is shared exactly equally the main carer will usually be<br />

the parent that receives child benefit<br />

• parents whose children visit but are not part of the household are not<br />

assessed as needing an extra bedroom for housing benefit.<br />

• foster children will not be considered when assessing whether or not a home<br />

is under-occupied.<br />

• couples using a spare bedroom, for example when recovering from illness will<br />

still be considered to be under-occupying<br />

• disabled people living in adapted or specially designed properties which have<br />

more bedrooms than are permitted by the size criteria will have their housing<br />

benefit reduced, unless designated as supported ‘exempt’ accommodation.<br />

• disabled children who because of their age would be expected to share with<br />

siblings, will not be entitled to a separate bedroom. 3<br />

2 This is a particular type of supported accommodation defined for housing benefit purposes as<br />

accommodation provided by a non-metropolitan county council in England, a housing association,<br />

a registered charity or voluntary organisation, where that body or a person acting on its behalf<br />

also provides the claimant with care, support or supervision<br />

3 <strong>The</strong> judgment in the Court of Appeal decision in the cases of Burnip, Trengove and Gorry<br />

concerns size criteria for Local <strong>Housing</strong> Allowance, including the need for an additional room for<br />

children with serious disabilities where it may be inappropriate for them to share a bedroom.<br />

It was unanimously held that the size criteria discriminated unlawfully against the three<br />

appellants, on grounds of disability, by not including provision to meet their need for an additional<br />

room. In light of the fact that leave to appeal to the Supreme Court has been sought the DSD has<br />

recommended that, although a decision of the Court of Appeal in GB is highly persuasive, it is not<br />

binding in NI and therefore should not be followed at present.<br />

Proposals for Changes to the <strong>Housing</strong> <strong>Selection</strong> <strong>Scheme</strong> 6


Key Proposals<br />

Ensuring New Tenants are not Under-Occupying<br />

<strong>The</strong> <strong>Housing</strong> Executive and registered <strong>Housing</strong> Associations as participating<br />

landlords in a Common <strong>Selection</strong> <strong>Scheme</strong> recognise that a comprehensive<br />

approach to allocations and housing options is a key element to responding to<br />

the introduction of <strong>Housing</strong> Benefit size restrictions for both existing and future<br />

tenants (new and current applicants). As Social Landlords we seek, as far as<br />

reasonably possible, to allocate accommodation to applicants in line with the<br />

<strong>Housing</strong> Benefit size restriction policy to mitigate any adverse impacts on new<br />

tenants and potential financial hardship and risk of arrears incurring next April<br />

2013 when the changes are due to take effect.<br />

It is in this context, mindful of the need to make the best use of stock in future<br />

allocations and support existing tenants affected by the changes that the <strong>Housing</strong><br />

Executive has identified a number of rules of the <strong>Housing</strong> <strong>Selection</strong> <strong>Scheme</strong><br />

which require further consideration and propose a number of changes which are<br />

deemed necessary to re-align allocation policies with welfare reform.<br />

Amendments to Minimum Bedroom Requirements - Schedule 3 of the<br />

Rules of the <strong>Housing</strong> <strong>Selection</strong> <strong>Scheme</strong><br />

<strong>The</strong> <strong>Housing</strong> Executive’s current allocation policy determines the accommodation<br />

needs of applicants based on the <strong>Housing</strong> <strong>Selection</strong> <strong>Scheme</strong>’s Minimum<br />

Bedroom Requirements which are contained in Schedule 3 of the Rules. This<br />

Schedule is used as the basis by which Allocating Officers decide what is a<br />

reasonable offer in line with Rule 57.<br />

(A) Changes to Age Criteria<br />

<strong>The</strong> ages at which children are expected to share bedrooms for the purposes of<br />

allocations currently differ to the age criteria contained in the proposed size<br />

restrictions rules in the forthcoming reform of <strong>Housing</strong> Benefit. (See Table 1)<br />

Proposals for Changes to the <strong>Housing</strong> <strong>Selection</strong> <strong>Scheme</strong> 7


Table 1: Examples of how the Size Criteria Might Apply to a Household with<br />

Children compared to the rules of the current <strong>Housing</strong> <strong>Selection</strong> <strong>Scheme</strong><br />

Household<br />

A household<br />

comprising of a<br />

lone parent with<br />

two children, a<br />

boy aged three<br />

and girl aged<br />

eight years<br />

Current <strong>Housing</strong><br />

<strong>Selection</strong> <strong>Scheme</strong><br />

Rules<br />

Would qualify for a<br />

three bedroom<br />

house, one for the<br />

lone parent and one<br />

each for the children<br />

as the children are of<br />

different sex and one<br />

is over the age of 7<br />

years.<br />

New <strong>Housing</strong><br />

Benefit Rules from<br />

1st April 2013<br />

Will qualify for<br />

housing benefit for a<br />

two bedroom home -<br />

one bedroom for the<br />

lone parent and a<br />

second for the<br />

children as they are<br />

both under 10 and<br />

expected to share.<br />

Impact of New<br />

<strong>Housing</strong> Benefit<br />

Rules<br />

If this family were<br />

housed in a three<br />

bedroom house in<br />

line with the current<br />

<strong>Housing</strong> <strong>Selection</strong><br />

<strong>Scheme</strong> rules they<br />

would have to pay<br />

the difference in<br />

rent of<br />

approximately £7 to<br />

£10 per week<br />

A household of a<br />

couple with three<br />

children: two boys<br />

aged two years<br />

and five years<br />

and a girl aged 11<br />

years old.<br />

Would be assessed<br />

as requiring three<br />

bedrooms - one for<br />

the couple, one for<br />

the two boys who<br />

would be expected to<br />

share and a separate<br />

bedroom for the girl<br />

aged 11.<br />

Will qualify for<br />

housing benefit for a<br />

three bedroom home<br />

- one for the couple,<br />

one for the two boys<br />

and a third for the girl<br />

aged 11.<br />

This household<br />

scenario would not<br />

be affected by the<br />

<strong>Housing</strong> Benefit<br />

size restriction.<br />

A household with<br />

a couple and<br />

three children, a<br />

girl of 6 and two<br />

boys aged 12 and<br />

16 years.<br />

Would be assessed<br />

as requiring three<br />

bedrooms - one for<br />

the couple, one for<br />

the two boys who<br />

would be expected to<br />

share until the older<br />

reached 18 years<br />

and a separate<br />

bedroom for the girl<br />

aged 6.<br />

Will qualify for<br />

housing benefit for<br />

four bedrooms - one<br />

for the couple; a<br />

separate one for the<br />

boy aged 16; a<br />

separate one for the<br />

boy aged 12 years<br />

and a separate<br />

bedroom for the girl<br />

of 6.<br />

This household<br />

would be entitled to<br />

a greater number of<br />

bedrooms under<br />

the new <strong>Housing</strong><br />

Benefit rules than<br />

under the current<br />

allocation rules in<br />

the <strong>Housing</strong><br />

<strong>Selection</strong> <strong>Scheme</strong>.<br />

Our Proposal: It is recommended that Schedule 3 of the <strong>Housing</strong> <strong>Selection</strong><br />

<strong>Scheme</strong> Rules should be amended to bring the age criteria for minimum<br />

bedroom requirements into line with that used for <strong>Housing</strong> Benefit purposes. This<br />

will mean that two children of different genders will now be expected to share up<br />

to the age 10 years (currently up to 7 years) and children of any age of the same<br />

Proposals for Changes to the <strong>Housing</strong> <strong>Selection</strong> <strong>Scheme</strong> 8


sex will be expected to share up to 16 years (currently 18 years), while persons<br />

of 16 years and above will be determined to require a bedroom of their own<br />

(currently 18 years). This proposed change will mean that while younger children<br />

of different sex will be expected to share a bedroom for longer, until age 10, on<br />

the other hand, it will be more generous for older children who will be assessed<br />

as requiring their own bedroom from age 16.<br />

This change is viewed as essential to re-align the allocations policy with the<br />

<strong>Housing</strong> Benefit regulations and ensure in so far as reasonably practical that new<br />

allocations make best use of housing stock and do not result in underoccupation.<br />

<strong>Consultation</strong> Question 1<br />

Do you agree with the recommendation that the Age Criteria for Children sharing<br />

bedrooms should be amended as outlined in line with the proposed amendments<br />

to <strong>Housing</strong> Benefit Regulations?<br />

(B) Allocations of Difficult-to-Let Properties<br />

Under the current rules of the <strong>Housing</strong> <strong>Selection</strong> <strong>Scheme</strong>, allocations resulting in<br />

under-occupation are on occasion made where there are good housing<br />

management grounds to applicants with smaller households, often single<br />

persons, in areas where housing need has been met or where a particular<br />

property has been identified as difficult to let in order to prevent or minimise<br />

voids.<br />

Our Proposal: It is proposed to retain this flexibility to enable participating<br />

landlords to make allocations in such circumstances. Working age tenants on<br />

housing benefit in these circumstances will be advised before they accept the<br />

offer that they will need to consider how they would meet any potential shortfall in<br />

rent as a result of the potential <strong>Housing</strong> Benefit restriction.<br />

<strong>Consultation</strong> Question 2<br />

Do you agree with the proposal to retain flexibility to make allocations to<br />

applicants who do not meet the minimum bedroom requirements for difficult-to-let<br />

areas or properties?<br />

(C) Parents with Access to Children who do not Permanently Reside with<br />

them<br />

<strong>The</strong> <strong>Housing</strong> Executive recognises the need for a parent(s) to have an additional<br />

bedroom to facilitate access arrangements to children who do not permanently<br />

reside with them and currently calculates minimum bedroom requirements and<br />

makes allocations on this basis. However, the proposed <strong>Housing</strong> Benefit size<br />

restriction does not recognise this need and from April 2013 such a bedroom will<br />

Proposals for Changes to the <strong>Housing</strong> <strong>Selection</strong> <strong>Scheme</strong> 9


e considered as under-occupied with the consequent reduction in <strong>Housing</strong><br />

Benefit for the tenant.<br />

Our Proposal: <strong>The</strong> <strong>Housing</strong> Executive has reviewed this allocation policy and<br />

proposes to continue with the policy of allocating an additional bedroom in such<br />

circumstances. Working age tenants in receipt of housing benefit in these<br />

circumstances will be advised before they accept the offer of accommodation<br />

that they will need to consider how they would meet any potential shortfall in rent<br />

as a result of the potential <strong>Housing</strong> Benefit restriction.<br />

<strong>Consultation</strong> Question 3<br />

Do you agree with the proposal to continue to make allocations to certain<br />

applicants of one bedroom more than their minimum requirements to facilitate<br />

access to children?<br />

(D) Flexibility to Make Allocations One Bedroom in Excess of Minimum<br />

Requirements<br />

<strong>The</strong> <strong>Housing</strong> Executive recognises that there are circumstances where a<br />

Participating Landlord may decide to make an allocation which is above the<br />

applicant’s bedroom requirements for good housing management reasons.<br />

<strong>The</strong>se may include:<br />

• Allocations to applicants where smaller accommodation, particularly onebedroom<br />

accommodation does not exist or turnover of smaller sized<br />

accommodation is very low.<br />

• Allocations where a property has special features / adaptations which would<br />

particularly meet the needs of the applicant or applicant’s household.<br />

Working age tenants in receipt of housing benefit in these circumstances will be<br />

advised before they accept the offer of accommodation that they will need to<br />

consider how they would meet any potential shortfall in rent. as a result of the<br />

potential <strong>Housing</strong> Benefit restriction.<br />

<strong>Consultation</strong> Question 4<br />

Do you agree with the proposal to retain the flexibility to make allocations one<br />

bedroom in excess of an applicant’s minimum bedroom requirements for good<br />

housing management reasons as outlined?<br />

Proposals for Changes to the <strong>Housing</strong> <strong>Selection</strong> <strong>Scheme</strong> 10


Overcrowding Rules<br />

<strong>The</strong> <strong>Housing</strong> <strong>Selection</strong> <strong>Scheme</strong> contains rules which determine whether a<br />

household is classified as overcrowded. As outlined above, the ages at which<br />

children are expected to share bedrooms are currently not aligned with those in<br />

the proposed <strong>Housing</strong> Benefit size restrictions.<br />

Our Proposal: It is recommended that the <strong>Housing</strong> <strong>Selection</strong> <strong>Scheme</strong> age<br />

criteria for determining overcrowding assessments (Rule 29) should be brought<br />

in line with that used for <strong>Housing</strong> Benefit purposes in order to ensure a consistent<br />

approach and applicants are not re-housed in circumstances where the property<br />

is deemed to be under-occupied.<br />

<strong>Consultation</strong> Question 5<br />

Do you agree that Rule 29 should be amended to bring the age criteria for<br />

sharing bedrooms in line with the proposed <strong>Housing</strong> Benefit size restriction?<br />

Interim Offers Policy<br />

<strong>The</strong> <strong>Housing</strong> Executive has developed a Communication Strategy to ensure that<br />

applicants, tenants and customers of the <strong>Housing</strong> Executive are advised of the<br />

implications of Welfare Reform and changes to benefits. A key part of that<br />

strategy is to ensure that Waiting List applicants, particularly those who will be<br />

offered a tenancy during the remainder of this financial year prior to the <strong>Housing</strong><br />

Benefit reforms in April 2013, are aware of the impending changes including the<br />

age criteria for minimum bedroom requirements and the potential financial<br />

implications. It is important to advise current applicants on the Waiting List when<br />

they are receiving an offer of the proposed changes to <strong>Housing</strong> Benefit. <strong>The</strong><br />

<strong>Housing</strong> Executive has amended the suite of <strong>Housing</strong> Executive and <strong>Housing</strong><br />

Association letters of offer to ensure applicants and transferring tenants’ are<br />

aware of the size restriction which is expected to take effect from April 2013 and<br />

to consider the potential financial impact.<br />

Tenancy Sign Up<br />

In addition, further advice and information has been added to the tenancy sign-up<br />

process informing new tenants of the potential impact of welfare reform<br />

provisions and how this might affect them. Tenants are also being advised that<br />

changes in household composition resulting in under-occupancy may affect their<br />

<strong>Housing</strong> Benefit entitlement for example family breakdown, children leaving<br />

home or the death of a family member. <strong>The</strong> signing of a financial undertaking<br />

should be considered where an allocation is awarded for a property above the<br />

new tenant’s bedroom requirements.<br />

Policy Succession and Assignment<br />

Rules 74, 75 and 77 of the <strong>Housing</strong> <strong>Selection</strong> <strong>Scheme</strong> provide for specific<br />

circumstances where a person who does not have a statutory entitlement to a<br />

Proposals for Changes to the <strong>Housing</strong> <strong>Selection</strong> <strong>Scheme</strong> 11


succession or assignment may be awarded a tenancy. However the <strong>Housing</strong><br />

Executive is concerned that decisions to award a tenancy to an applicant who<br />

meets the policy Assignment and Succession criteria as outlined may not make<br />

best use of stock and may result in under occupation and potential financial<br />

hardship for the new tenant. Working age tenants in receipt of housing benefit in<br />

these circumstances will be advised before they accept the offer that they will<br />

need to consider how they would meet any potential shortfall in rent as a result of<br />

the potential <strong>Housing</strong> Benefit restriction.<br />

Our Proposal: <strong>The</strong> relevant rules should be amended to clarify that the landlord<br />

may decide to withhold consent in such circumstances where the new tenancy is<br />

likely to or would result in under occupation and potential financial hardship.<br />

<strong>Consultation</strong> Question 6<br />

Do you agree with the proposal that a tenant who is awarded a policy succession<br />

or policy assignment and is under-occupying their property should be advised of<br />

the potential impact on a housing benefit application and will be asked to make a<br />

financial declaration of responsibility for any shortfall in rent?<br />

Supporting Existing Tenants who wish to Downsize<br />

<strong>The</strong> <strong>Housing</strong> Executive has identified that over 32,500 4 <strong>Housing</strong> Executive and<br />

<strong>Housing</strong> Association tenants who are of working age and in receipt of <strong>Housing</strong><br />

Benefit would be affected by the size restriction and deemed to be underoccupying<br />

their home. This is approximately one in four households living in<br />

social housing in <strong>Northern</strong> Ireland (See Table 2).<br />

Table 2: <strong>Housing</strong> Executive and <strong>Housing</strong> Association Tenants affected by<br />

Size Restriction<br />

No. of<br />

NIHE<br />

Tenants<br />

Affected<br />

No. of HA<br />

Tenants<br />

Affected<br />

Total<br />

Social<br />

Sector<br />

Tenants<br />

Total Tenants 89,000 34,000 123,000<br />

Tenants in Receipt of HB 68,300 24,400 92,700<br />

Working Age Tenants in receipt of HB 43,600 15,000 58,600<br />

Tenants Affected by Size Restriction 26,168 6,262 32,430<br />

No. Under occupied by 1 bedroom<br />

(Avg. Weekly HB Reduction)<br />

No. Under occupied by 2 bedrooms or more<br />

(Avg. Weekly HB Reduction)<br />

18,850<br />

(£8.25)<br />

7,318<br />

(£14.70)<br />

5,046<br />

(£9.24)<br />

1,216<br />

(£17.48)<br />

23,896<br />

8,534<br />

4 This figure relates to data extracted from housing benefit files matched with property records in<br />

May 2012 and is subject to fluctuation as a result of housing benefit change in circumstances and<br />

household occupancy.<br />

Proposals for Changes to the <strong>Housing</strong> <strong>Selection</strong> <strong>Scheme</strong> 12


Many tenants will choose not to move and to stay and pay the difference<br />

between their housing benefit award and their full rent charge; however some<br />

may not be able to meet the shortfall and may decide to move to avoid financial<br />

hardship, rent arrears and the risk of losing their home and becoming homeless.<br />

We are expecting that the demand for transfers is likely to rise sharply as some<br />

tenants try to move to smaller, more affordable homes. <strong>The</strong> majority of the<br />

tenants who will be affected are single people and couples with no children living<br />

in the household (16,000 NIHE tenants and 3456 <strong>Housing</strong> Association tenants).<br />

Consequently, there may be increased demand for tenants to downsize to one<br />

bedroom homes.<br />

As landlords it is important that we provide support and advice to our tenants in<br />

these circumstances and that we ensure that the <strong>Housing</strong> <strong>Selection</strong> <strong>Scheme</strong><br />

gives due recognition to under-occupying tenants who are impacted by this size<br />

restriction and suffering financial hardship. <strong>The</strong> <strong>Housing</strong> Executive must consider<br />

whether the level of recognition within the <strong>Housing</strong> <strong>Selection</strong> <strong>Scheme</strong> given to<br />

under-occupying tenants is set at a high enough level to enable them to move if<br />

they need to. <strong>The</strong> <strong>Housing</strong> <strong>Selection</strong> <strong>Scheme</strong> currently recognises the needs of<br />

tenants who are under-occupying through the award of Under-Occupation points.<br />

Under-Occupation Points<br />

Under-Occupation Points are currently awarded only to a social housing tenant if<br />

his / her current accommodation exceeds the needs of the tenant’s household,<br />

and all other persons residing in the dwelling, in respect of the number and size<br />

of available bedrooms. 10 points are awarded for each bedroom in excess of the<br />

requirements (using the same criteria applied to determine Overcrowding points).<br />

<strong>The</strong> maximum number of points that may be awarded for Under Occupation is 30<br />

i.e. 3 bedrooms in excess of requirements.<br />

Following careful consideration it is the view that this level of points may not be<br />

sufficient to allow tenants who are affected by this change to ‘compete’ for<br />

allocations, given that many tenants do not have any other housing need factors<br />

and traditionally accumulate limited points under the <strong>Housing</strong> <strong>Selection</strong> <strong>Scheme</strong>.<br />

It is of interest that in Great Britain the Localism Act (2011) removed most<br />

transferring tenants from the allocation rules, thereby allowing local authorities<br />

the flexibility to give additional priority to existing tenants affected by the size<br />

criteria who wish to move to smaller accommodation. While the <strong>Housing</strong><br />

Executive is aware of the need to give due priority to new applicants in housing<br />

need, it recognises that it needs to balance this with the needs of existing tenants<br />

who need to move out of a home larger than they require and which they cannot<br />

afford. <strong>The</strong> <strong>Housing</strong> Executive and registered <strong>Housing</strong> Associations as<br />

participating landlords in a Common selection <strong>Scheme</strong> are of the view that<br />

under-occupying tenants affected by the size restriction should be treated as a<br />

priority group regardless of housing need, particularly if they are living in the type<br />

of home which is in demand.<br />

Proposals for Changes to the <strong>Housing</strong> <strong>Selection</strong> <strong>Scheme</strong> 13


Allocations to Transfers - Rule 72<br />

Rule 72 of the <strong>Scheme</strong> contains a general principle when making allocations to<br />

transfer applicants that a ratio of one transfer allocation for every two Waiting List<br />

allocations should be employed. Underlying this rule, within guidance, is a policy<br />

of awarding ‘Management Transfer status’ to certain categories of tenants to<br />

allow Designated Officers the flexibility to make best use of their housing stock<br />

by allowing Officers the discretion to transfer tenants, under certain<br />

circumstances, without reference to their points level.<br />

Our Proposal: It is proposed that the <strong>Housing</strong> <strong>Selection</strong> <strong>Scheme</strong> should relax<br />

the transfer: applicant allocations ratio and introduce a new Management<br />

Transfer category which will prioritise transferring tenants who are underoccupying<br />

and wish to downsize, thereby freeing up the resulting vacancy to<br />

applicants on the Waiting List in housing need.<br />

<strong>Consultation</strong> Question 7<br />

Do you agree with the proposal that the <strong>Housing</strong> <strong>Selection</strong> <strong>Scheme</strong> should relax<br />

the current transfer: applicant allocations ratio and include an additional priority<br />

Management Transfer category to address the needs of tenants who are under<br />

occupying and are seeking to move to a smaller more affordable home?<br />

Access to the Transfer List/Consent to a Mutual Exchange<br />

<strong>The</strong> <strong>Housing</strong> Executive seeks to ensure that its policy on transfers does not pose<br />

any barriers to those tenants affected by the size restriction wishing to downsize.<br />

<strong>The</strong>refore it is recognised that the current policy of refusing access to the transfer<br />

list to tenants who have held that tenancy for less than two years and to those<br />

tenants who are in rent arrears of four or more weeks should be amended.<br />

Our Proposal: It is proposed on the basis of good housing management that this<br />

access criterion is waived for tenants who have incurred arrears as a direct<br />

consequence of the shortfall in <strong>Housing</strong> Benefit due to size restriction. Similarly,<br />

the <strong>Housing</strong> Executive may wish to consent to a request for a suitable Mutual<br />

Exchange (Assignment by Way of Exchange) for those tenants who are in<br />

arrears as a direct result of the shortfall in <strong>Housing</strong> Benefit due to the size<br />

restriction.<br />

<strong>Consultation</strong> Question 8<br />

Do you agree with the proposal that the criteria for access to the transfer list and<br />

the discretion to withhold consent to a request for a Mutual Exchange should be<br />

amended in circumstances where the tenant is under occupying and impacted by<br />

the size restriction and seeks to move to smaller accommodation?<br />

Proposals for Changes to the <strong>Housing</strong> <strong>Selection</strong> <strong>Scheme</strong> 14


Mobility and Mutual Exchange <strong>Scheme</strong>s<br />

Rules 80 to 83 of the <strong>Housing</strong> <strong>Selection</strong> <strong>Scheme</strong> are rules which relate to<br />

National Mobility <strong>Scheme</strong>s which no longer exist and therefore should be<br />

removed. <strong>The</strong> government recently launched a new HomeSwap Direct initiative,<br />

a national mobility web based scheme which facilitate tenant exchange across<br />

the UK. Subject to any legal constraints, <strong>The</strong> <strong>Housing</strong> Executive and registered<br />

housing associations are keen to offer tenants various mobility options and are<br />

currently exploring the options to participate in this initiative.<br />

<strong>Consultation</strong> Question 9<br />

Do you agree with the proposal to enable tenant exchange across the UK?<br />

Creation of Joint Tenancies<br />

<strong>The</strong> <strong>Housing</strong> <strong>Selection</strong> <strong>Scheme</strong> currently contains rules (78-79) which specify the<br />

circumstances in which a participating landlord may consent to the creation of a<br />

joint tenancy. Generally, the specified circumstances require that the current<br />

tenant and the proposed joint tenant (other than a spouse or civil partner) have<br />

been residing in the current tenant’s household for a period of at least one year.<br />

<strong>The</strong> <strong>Housing</strong> Executive recognises that it may be beneficial to relax these rules<br />

to allow sole tenants to have a joint tenancy with another person, thereby<br />

improving their ability to address issues of under-occupation and pay any<br />

shortfall in rent arising from a reduction in <strong>Housing</strong> Benefit.<br />

Our Proposal: It is proposed to amend the relevant rules to remove the 12<br />

month residence requirement for a proposed joint tenant when considering an<br />

application for a change in tenancy from a sole tenancy to a joint tenancy.<br />

<strong>Consultation</strong> Question 10<br />

Do you agree with the proposal to remove the existing 12 month residence<br />

requirement for the creation of joint tenancies?<br />

Impact on Local Lettings Plans<br />

Under Rule 84 of the <strong>Housing</strong> <strong>Selection</strong> <strong>Scheme</strong> the <strong>Housing</strong> Executive and<br />

<strong>Housing</strong> Associations have, through the authority of the Board and Department,<br />

developed local lettings plans to deliver balanced and sustainable communities,<br />

to increase demand and tackle issues such as anti-social behaviour. Applying<br />

these local lettings policies often mean that people are allocated homes which<br />

have more bedrooms than they are deemed to need under the size criteria and<br />

those homes may no longer be affordable once the size criteria is introduced.<br />

<strong>The</strong> <strong>Housing</strong> Executive and <strong>Housing</strong> Associations recognise that it will be<br />

necessary to review this approach in the light of the size criteria to establish if<br />

their use means that working age people on housing benefit are offered homes<br />

which are larger than the size criteria. It will be necessary to consider if we<br />

Proposals for Changes to the <strong>Housing</strong> <strong>Selection</strong> <strong>Scheme</strong> 15


decide to stop using them, how else we might be able to balance communities.<br />

We will need to review these policies to check that they are still sustainable and<br />

consider if some re-designation or flexibility, if needed, is possible. As part of this<br />

it is important to consult and work closely with existing residents as any decisions<br />

taken will impact on them.<br />

For example policies may:<br />

• designate certain flats for ‘Mature/Elderly’ residents. This age-based local<br />

lettings plan facilitates lettings to older people to ensure the quiet and<br />

peaceful enjoyment of the neighbourhood. However, this policy may result in<br />

a restricted supply of units for younger people affected by the size criteria to<br />

transfer to. <strong>The</strong> Designated Lettings Policy under Rule 70A will require<br />

review.<br />

• avoid housing families with young children (under 10 years) in larger, upper<br />

floor flats - which means that single people and couples without children are<br />

allocated those units and, following the introduction of the size criteria, they<br />

may be under-occupying and unable to afford to live there.<br />

<strong>Consultation</strong> Question 11<br />

Do you agree that the local lettings policies should be reviewed in light of the<br />

impending size restriction?<br />

Proposals for Changes to the <strong>Housing</strong> <strong>Selection</strong> <strong>Scheme</strong> 16


Equality<br />

Section 75 of the <strong>Northern</strong> Ireland Act 1998 requires the <strong>Housing</strong> Executive in<br />

carrying out its functions to have due regard to the need to promote equality of<br />

opportunity:<br />

• between persons of different religious belief, political opinion, racial group,<br />

age, marital status or sexual orientation;<br />

• between men and women generally;<br />

• between persons with a disability and persons without; and<br />

• between persons with dependants and persons without.<br />

Without prejudice to the obligations set out above, the <strong>Housing</strong> Executive is also<br />

required, in carrying out its functions relating to <strong>Northern</strong> Ireland, to have regard<br />

to the desirability of promoting good relations between persons of different<br />

religious belief, political opinion or racial group.<br />

<strong>The</strong> Department for Social Development carried out a full Equality Impact<br />

Assessment of the Welfare Reform Bill in April 2012.<br />

http://www.dsdni.gov.uk/wefare-reform-bill-completed-eqia-april-2012.doc<br />

<strong>The</strong> <strong>Housing</strong> Executive will undertake an equality screening of the proposals<br />

contained in this paper. <strong>The</strong> purpose of the screening is to assess different<br />

impact of the proposals on the Section 75 groups outlined above. This screening<br />

will help inform the development of these proposals. However if the screening<br />

identifies adverse (or major) impacts, consideration will be given to a full equality<br />

impact assessment.<br />

<strong>Consultation</strong> Question 12<br />

Do you have any information to help inform the screening process? Are there any<br />

particular equality issues that you feel should be taken into account in the<br />

screening (or equality impact assessment)?<br />

Proposals for Changes to the <strong>Housing</strong> <strong>Selection</strong> <strong>Scheme</strong> 17


Rural Proofing<br />

Rural proofing is a commitment by Government to ensure that policies take<br />

account of rural circumstances and needs. An initial screening of the proposed<br />

changes to the <strong>Housing</strong> <strong>Selection</strong> <strong>Scheme</strong> has been undertaken to consider rural<br />

issues. <strong>The</strong> following issues have been identified relevant to rural areas:<br />

1. It is probable that relocating households to smaller housing will be harder in<br />

rural areas because of the housing stock and the distances involved.<br />

Research undertaken by the University of Cambridge in England shows that<br />

under-occupation is more common in rural than in urban areas. Contributory<br />

factors include the lower level of smaller properties in rural areas and an older<br />

rural demographic. An examination of similar issues here is currently ongoing<br />

but indications are that a similar situation exists in <strong>Northern</strong> Ireland.<br />

2. While infrastructure varies in rural areas it is generally weaker, in terms of<br />

both information technology and physical networks. This could create<br />

particular issues in ensuring that information on the proposed amendments is<br />

accessible for rural dwellers.<br />

In relation to 1, the proposed changes are primarily designed to address issues<br />

and where possible alleviate problems arising from Welfare Reform. While the<br />

out-workings of Welfare Reform arising from <strong>Housing</strong> Benefit size criteria may<br />

have a differential impact in rural areas, when the proposed HSS changes apply,<br />

they will provide similar mitigation in both urban and rural areas. <strong>The</strong> specific<br />

changes proposed to the <strong>Housing</strong> <strong>Selection</strong> <strong>Scheme</strong> have a general applicability<br />

(i.e. there is no difference in their application depending on where you live) and<br />

as such do not have any bias towards or against rural areas.<br />

In relation to 2, we acknowledge the importance of accessible information and in<br />

this context, need to ensure that those affected by shortfalls in housing benefit<br />

are aware of the implications; this applies both to existing tenants and to those<br />

applying for or taking up tenancies. As proposed communication involves direct<br />

contact with those affected either by letter or - when signing up for tenancies -<br />

face-to face interviews, this will ensure that those affected in rural areas are<br />

aware of the implications involved.<br />

In effect therefore, from the examination to date, the proposed changes to the<br />

<strong>Housing</strong> <strong>Selection</strong> <strong>Scheme</strong> do not appear to have any potential for an adverse<br />

differential impact on rural areas.<br />

<strong>Consultation</strong> Question 13<br />

Do you have any evidence to suggest that the proposals within this paper would<br />

create any adverse differential impact on rural areas?<br />

Proposals for Changes to the <strong>Housing</strong> <strong>Selection</strong> <strong>Scheme</strong> 18


Summary of <strong>Consultation</strong> Questions<br />

<strong>Consultation</strong> Question 1<br />

Do you agree with the recommendation that the Age Criteria for Children sharing<br />

bedrooms should be amended as outlined in line with the proposed amendments<br />

to <strong>Housing</strong> Benefit Regulations?<br />

<strong>Consultation</strong> Question 2<br />

Do you agree with the proposal to retain flexibility to make allocations to<br />

applicants who do not meet the minimum bedroom requirements in difficult-to-let<br />

areas or properties?<br />

<strong>Consultation</strong> Question 3<br />

Do you agree with the proposal to continue to make allocations to certain<br />

applicants of one bedroom more than their minimum requirements to facilitate<br />

access to children?<br />

<strong>Consultation</strong> Question 4<br />

Do you agree with the proposal to retain the flexibility to make allocations one<br />

bedroom in excess of an applicant’s minimum bedroom requirements for good<br />

housing management reasons as outlined?<br />

<strong>Consultation</strong> Question 5<br />

Do you agree that Rule 29 should be amended to bring the age criteria for<br />

sharing bedrooms in line with the proposed <strong>Housing</strong> Benefit size restriction?<br />

<strong>Consultation</strong> Question 6<br />

Do you agree with the proposal that tenants who are awarded a policy<br />

succession or policy assignment and are under-occupying their property should<br />

be advised of the potential impact on a housing benefit application and will be<br />

asked to make a financial declaration of responsibility for any shortfall in rent?<br />

<strong>Consultation</strong> Question 7<br />

Do you agree with the proposal that the <strong>Housing</strong> <strong>Selection</strong> <strong>Scheme</strong> should relax<br />

the current transfer: applicant allocations ratio and include an additional priority<br />

Management Transfer category to address the needs of tenants who are under<br />

occupying and are seeking to move to a smaller more affordable home?<br />

<strong>Consultation</strong> Question 8<br />

Do you agree with the proposal that the criteria for access to the transfer list and<br />

the discretion to withhold consent to a request for a Mutual Exchange should be<br />

amended in circumstances where the tenant is under occupying and impacted by<br />

the size restriction and seeks to move to smaller accommodation?<br />

<strong>Consultation</strong> Question 9<br />

Do you agree with the proposal to allow tenant exchange across the UK?<br />

Proposals for Changes to the <strong>Housing</strong> <strong>Selection</strong> <strong>Scheme</strong> 19


<strong>Consultation</strong> Question 10<br />

Do you agree with the proposal to remove the existing 12 month residence<br />

requirement for the creation of joint tenancies?<br />

<strong>Consultation</strong> Question 11<br />

Do you agree that the local lettings policies should be reviewed in light of the<br />

impending size restriction?<br />

<strong>Consultation</strong> Question 12<br />

Do you have any information to help inform the screening process? Are there any<br />

particular equality issues that you feel should be taken into account in the<br />

screening (or equality impact assessment)?<br />

<strong>Consultation</strong> Question 13<br />

Do you have any evidence to suggest that the proposals within this paper would<br />

create any adverse differential impact on rural areas?<br />

Proposals for Changes to the <strong>Housing</strong> <strong>Selection</strong> <strong>Scheme</strong> 20


How to Respond<br />

We would welcome your views on the proposals contained in this paper and the<br />

various consultation questions summarised above.<br />

<strong>The</strong> consultation period will run from date to date 15th November 2012 to 24th<br />

January 2013. Further copies of the consultation document are available on the<br />

<strong>Housing</strong> Executive’s website (www.nihe.gov.uk/index/consultations) or by<br />

contacting us at the address below.<br />

If this document is not in a format that suits your needs, please contact us and<br />

we can discuss alternative arrangements.<br />

Unless respondents indicate otherwise, all responses to this consultation may be<br />

published in full or summary form. You should also note that the <strong>Housing</strong><br />

Executive is subject to the Freedom of Information Act 2000. This means that we<br />

have to consider any request made to us under the Act for information relating to<br />

responses made to this consultation.<br />

Responses by email are particularly encouraged for ease of compilation. E-mail:<br />

fiona.neilan@nihe.gov.uk. Or alternatively please send your responses to us by<br />

24th January 2013 to the following address:<br />

Fiona Neilan<br />

<strong>Housing</strong> Policy<br />

<strong>Northern</strong> Ireland <strong>Housing</strong> Executive<br />

<strong>The</strong> <strong>Housing</strong> Centre<br />

2 Adelaide Street<br />

Belfast<br />

BT2 8PB<br />

Telephone: (028) 9031 8240<br />

Text phone: 0845 6504381<br />

Fax: (028) 9031 8258<br />

Proposals for Changes to the <strong>Housing</strong> <strong>Selection</strong> <strong>Scheme</strong> 21


Next Steps<br />

Following the end of the consultation period, the <strong>Housing</strong> Executive’s Board and<br />

Department for Social Development will wish to fully consider the views of respondents<br />

before making any determination on the proposals. All views and proposals will be<br />

subject to an equality impact assessment.<br />

When a decision has been reached NIHE will publish a final report including a summary<br />

of responses to the consultation on the proposals, detailing how the issues raised have<br />

been considered and, where appropriate, any action that will be taken as a result.<br />

Subsequently, the <strong>Housing</strong> Executive’s Board and the Department will be asked to<br />

consider and approve necessary amendments to the <strong>Housing</strong> <strong>Selection</strong> <strong>Scheme</strong>.<br />

<strong>The</strong> changes to <strong>Housing</strong> Benefit to introduce the size restriction are due to come into<br />

effect in April 2013 and therefore the <strong>Housing</strong> Executive aims to introduce the<br />

amendments proposed in this consultation paper to coincide with that date.

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